Reference no: EM132153004

Discussion Question - Alternatives to Financing Government by Taxation

The national government in the United States has the deepest financial pockets because it relies on income taxes. States are often in competition with each other to provide the most services and the lowest taxes. For example, states compete with each other to attract businesses, hoping that establishing the enterprise in their state will bring multiple economic benefits. For local governments, however, reliance on property tax means that jurisdictions with high-value properties have a bountiful tax base while jurisdictions with modest properties struggle to meet the costs of basic services such as police, fire, and sanitation.

Hyman (2014) discusses alternatives to financing government by taxation on pages 386-397 of the course text. An alternative to financing government services by taxation are the many toll roads with congestion pricing across the United States. For example, in Minneapolis, Minnesota, a person driving from the western to the eastern parts of the metropolitan area can choose a free highway or a congestion-priced toll road. At busy times of the day, the price is higher than at other times of day. Choices about how to pay for government services affect the political equilibrium because they affect voter behavior and private choices that citizens make about their own earning, spending, and saving. For this Discussion, review the week's Learning Resources and the examples of alternatives to taxation you find in the Hyman (2014) course text.

An analysis of alternatives to taxation for supporting government expenditures. Your analysis should include the following:

A description of at least three alternatives to taxation for financing government expenditures

An analysis of two advantages for each identified alternative, including supportive examples and credible evidence

Project -

The Final Project serves as a culmination and synthesis of what you have learned during this course. You are to build on the work done in previous activities, while using the project to reflect and refine the previous assignments. Refer to the Final Project Overview document for complete instructions.

In 10 pages (double-spaced), analyze and evaluate your chosen local government jurisdiction. Your Final Project must respond to the following questions:

How did you determine, from the budget and associated financial information, the three major policy issues facing the jurisdiction you have chosen?

How is the jurisdiction choosing to address these policy issues, and what are the criteria driving the decision making?

What are the decisions being made regarding the revenue sources they are choosing to use? Are there explicit decisions being made between taxes and user fees? What is the basis for these decisions?

Are services being subsidized for some segments of the population from the revenues derived from another segment of the population? If yes, describe what and how.

Are services or programs being provided by this jurisdiction that you think would more appropriately be provided by some other level of government? If yes, describe them and explain your reasoning.

From the insights you have gained in this course, how would you evaluate the performance of this jurisdiction? Are there policy changes you would recommend? If you were in a leadership position within this jurisdiction, are there programs or changes in direction that you would propose?

Is the jurisdiction expressing any uncertainty about the coming year? Does it have contingency funds set aside for unexpected situations or initiatives/issues not yet defined? If yes, do they identify the possible uses that could occur?

Attachment:- Assignment File.rar